Hello Everyone! Long-time Wave user, first time reaching out to the community. I'm looking for suggestions on how to best journalize entries for guaranteed payments to members of an LLC (US). If anyone has any suggestions, I'd greatly appreciate it.
Hey @CCJMc. Although I'm not an expert in terms of giving out accounting advice here -- what I 'think' should work in your particular situation is to categorize those payments under the "Shareholder Loan" category. I still think it would be best to get advice from an accountant before you continue with that process, but that should be the best work flow for you here.
Guaranteed payments are deductible by partnerships (LLC) and are presented on the income statement as Guaranteed Payments . Feel free to contact me if you have any further questions.
How exactly should I show the guaranteed payment? My business account is linked and automatically shows the expense. But, what category do I use to indicate that it is a guaranteed payments? The closest seems to be "Owner Investment / Drawings".
It is an expense of the partnership. Treated like salary. Feel free to contact me at 443-851-4054 if you have any other questions.
Mike G, CPA
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